Income and corporation tax receipts rose to record levels and as a result the UK government borrowing fell to £9.4 billion in June. This is down £0.8 billion from the year before. Income tax receipts rose to £11.5 billion and corporation tax brought in £1.7 billion, according to the Office for National Statistics (ONS). These figures are both record monthly highs.

For the month of June, the result was the lowest borrowing figure since 2008. Despite this, many expected this to drop further to £8.5 billion. However, across the financial year so far, borrowing has fallen by £6.1 billion to £25.1 billion.

Government finances also received a boost of £117 billion last month because of a fine that Lloyds Banking Group paid over its handling of payment protection insurance (PPI) complaints. Not only that, but the Office for Budget Responsibility (OBR) forecast that public borrowing would be £69.5 billion this year. This was revealed in the summer Budget earlier this month.

At the end of June this year, public sector net debt was £1.513 trillion, or 81.5% of annual UK economic output. This is up from 80.8% in May.

By 2019, the government is aiming to eliminate the budget deficit and run a £10 billion surplus in 2020 as well as in future years. In the summer Budget, the chancellor George Osborne stated that there would be £37 billion of spending cuts during this parliament.

The government’s spending review in November will set out £20 billion worth of departmental budget cuts over the next five years.

British business could save at least £10 billion because the Queen’s Speech outlined plans for a bill to cut red tape.

Independent regulators, who are charged with making sure that this target is achieved, will monitor the plans. In addition to this, the bill has proposed a new Small Business Conciliation Service, which will help settle disputes between small and large businesses. This will help solve the concerns over late payment, which is particularly a concern of small businesses. The service will handle disputes without the need for court action.

Ahead of a revaluation which is due in 2017, there ill be a reform of the current system where businesses can appeal against business rates and this is intended to simplify the process. The government stated that it intends to take action to strengthen UK competitiveness and to back businesses to create jobs. It intends to make the £10 billion cuts by the end of this parliament.

An EU referendum by the end of 2017 is among a of new laws in the first Conservative Queen’s Speech in nearly two decades.

The programme also includes extra free childcare, an income tax freeze and the right-to-buy for housing association tenants.

The proposed legislation includes a ban on income tax, VAT and national insurance increases for five years. Not only that but there will be a freeze on working age benefits, tax credits and child benefit for two years from 2016 to 2017. By 2017, there will be 30 hours free childcare a week for three and four year olds. Adding to this list is 500 more free schools and those schools that are failing will be turned into academies.

The total amount that one household can claim in benefits will be cut from £26,000 to £23,000. The NHS should be improved by 2020, which is good news for all of those who felt that the NHS was sinking.

During the general election campaign, the Conservatives promised many of the proposed new laws and this now means that David Cameron can press ahead with plans that were previously blocked by the Liberal Democrats.

Despite this, the prime minister has delayed the plans to scrap the Human Rights Act; this is to avoid a potential confrontation with his own backbenchers. As a result of this, the government will bring forward proposals for a British Bill of Rights to replace the Human Rights Act, with legislation expected proceeding consultation in parliament in future.

The environment secretary Liz Truss said that the vote for the ban on fox hunting would happen by 2020.